What's the Tariff on Nickel?
Nickel from Indonesia, Philippines, Russia.
Current Tariff Rate
10%
Pre-2025 Rate
0%
Rate Increase
+10pp
Price Impact
+10%
+$1,600
Real-World Price Impact
Before Tariffs
$16,000
1 ton nickel
After Tariffs
$17,600
1 ton nickel
That's $1,600 more per unit — a 10% price increase paid by the American buyer.
Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.
The Story Behind This Tariff
Nickel's 10% tariff arrives at the worst possible moment for America's electric vehicle ambitions. Nickel is the critical cathode material in high-energy-density lithium-ion batteries — the type preferred for EVs with 300+ mile range. Indonesia has explosively grown to dominate global nickel supply, leveraging a 2020 raw ore export ban that forced processing domestically and attracted massive Chinese investment. The Philippines and Russia round out the major suppliers, creating a geopolitically precarious supply map. The tariff raises costs for US battery manufacturers racing to meet Inflation Reduction Act production targets, potentially disqualifying certain battery chemistries from IRA tax credits if nickel costs push total battery costs above thresholds. Tesla, Ford, and GM all depend on Indonesian nickel for their EV supply chains. The irony compounds: tariffs meant to strengthen domestic industry may slow the EV transition that domestic policy simultaneously subsidizes.
📦 Supply Chain
Primary Origin
Indonesia
Made in USA
5%
Import Volume
.1B
Alternatives
Philippines, Canada, Australia (limited volumes)
📅 Tariff Timeline
2020
Indonesia bans raw nickel ore exports, reshaping global supply
0%2022
Nickel price spikes to 00,000/ton on LME short squeeze
0%2024
Indonesian nickel flooding market, prices crash 40%
0%2025-Feb
Section 122 tariff applied to nickel imports
10%👥 Consumer Impact
Households Affected
8M
Annual Cost Per Household
20
💡 Did You Know?
- •Indonesia went from minor player to controlling 50% of global nickel supply in just 5 years through an aggressive export ban strategy
- •The March 2022 LME nickel short squeeze briefly sent prices to 00,000/ton — the exchange cancelled billions in trades
- •A single EV battery contains 30-80 kg of nickel — tariffs add 80-1,280 per vehicle at current prices
Tariff Details
- HTS Code
- 7502.10
- Current Rate
- 10%
- Pre-2025 Rate
- 0%
- Tariff Type
- Section 122
Legal Authority
Section 122 (Balance of Payments)
Effective: April 2025
Baseline 10% tariff on imports to address balance of payments
The tariff on Nickel is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.
Who Actually Pays This Tariff?
Despite claims that tariffs are paid by foreign countries, the 10% tariff on Nickel is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.
- ✓ The foreign seller receives the same price as before
- ✓ The US importer pays 10% of the customs value to CBP
- ✓ The retailer marks up the higher landed cost
- ✓ You pay more at the register: $16,000 → $17,600
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